Keeping things simple.

[darktone]

I positively cringe when i look at some of the stuff posted in the early days!

....What a load of b******s!

 

[darktone]

Away from the screen for a couple o days at least, due to stuff! So no trades.
Am watching for a break down which id be all over, aiming for 200 or so seems reasonable.

Cheers
D

 

[darktone]

Interesting stuff, lowest ticks not shown!

 

[darktone]

Efforts for today trying get short in line with H4. H4 trend changed had a quick stab hoping for some continuation, nothin doing so am done donating to the chop.

Going back to the daily for direction. H4 is giving me way to much screen time so going back to what i know.
Edit: I guess screentime is the wrong way of putting it. H4 gives many more than D1 obviously. Why I changed down? Not sure but think it was for the purposes of the thread. Yep plain silly thing to do imo. . So back to D1 for direction.

 

[darktone]

Results from this week (see screenie).

With other 'stuff' i have on it probably would have been better off not trading at all this week, with 'stuff' the way it is im not sure how much attention i give it next week either but say la vie!

The direction as said before will be given by D1 rather than H4, entry on the 5m. This goes for all attempts.

 

[darktone]

Overall view of Dax atm the is still up, if get the opportunity id shoot for a 100,,ish. If the direction changes a shot short for 200 sounds about right.

Comon guys wheres the discussion? Feels like im talking to myself again!:|

 

[vettelsfinger]

Hi Darktone,

I have finally managed to read through the thread

It looks as though you have put a lot of work into refining this thread, if I perceive that the focus is on managing losses rather than focusing of profits? I have looked into limit orders and what they are and wondered if you get caught out by your order not being filled at the right time? Does this raise the chance of larger losses?

As an absolute beginner, although this has opened my eyes to money management, I think the intensity of this strategy is not suitable for what I want from trading I am looking for a clear profitable strategy to develop. Once I have done this I believe that the principles of this strategy using limit orders to define loss levels rather than stop losses could work out for me.

Please let me know if I have misinterpreted this at all it would be good to know your thoughts.

Thanks
Tom

 

[Splitlink]

Hi Darktone,

I have finally managed to read through the thread

It looks as though you have put a lot of work into refining this thread, if I perceive that the focus is on managing losses rather than focusing of profits? I have looked into limit orders and what they are and wondered if you get caught out by your order not being filled at the right time? Does this raise the chance of larger losses?

As an absolute beginner, although this has opened my eyes to money management, I think the intensity of this strategy is not suitable for what I want from trading I am looking for a clear profitable strategy to develop. Once I have done this I believe that the principles of this strategy using limit orders to define loss levels rather than stop losses could work out for me.

Please let me know if I have misinterpreted this at all it would be good to know your thoughts.

Thanks
Tom

I have found that pre-set orders are, more often than not, more accurate than manual ones. The only drawback with my method is that I like to finish my bar. Quite often an order can be triggered by a spike, with orice returning to its old level and you might be the only one left holdiing the baby! Bar completion, making you wait that little extra, puts a bit of self-discipline into it.

 

[hungcable]

I have found that pre-set orders are, more often than not, more accurate than manual ones. The only drawback with my method is that I like to finish my bar. Quite often an order can be triggered by a spike, with orice returning to its old level and you might be the only one left holdiing the baby! Bar completion, making you wait that little extra, puts a bit of self-discipline into it.

Hi Split.

Your post is slightly contradicting. On the one hand you mention bar completion, and on the other you mention price and resting orders. The price is either right or wrong, bar completion is irrelevant, imho.

 

[Splitlink]

Hi Split.

Your post is slightly contradicting. On the one hand you mention bar completion, and on the other you mention price and resting orders. The price is either right or wrong, bar completion is irrelevant, imho.

Yes, I do not, normally, leave orders unless I have to. Going out, or doing something else, maybe visitors. Manually trading and waiting for bar completion is what I prefer. Don't worry, we are all different!

 

[darktone]

Hi Darktone,

I have finally managed to read through the thread

It looks as though you have put a lot of work into refining this thread, if I perceive that the focus is on managing losses rather than focusing of profits? I have looked into limit orders and what they are and wondered if you get caught out by your order not being filled at the right time? Does this raise the chance of larger losses?

As an absolute beginner, although this has opened my eyes to money management, I think the intensity of this strategy is not suitable for what I want from trading I am looking for a clear profitable strategy to develop. Once I have done this I believe that the principles of this strategy using limit orders to define loss levels rather than stop losses could work out for me.

Please let me know if I have misinterpreted this at all it would be good to know your thoughts.

Thanks
Tom

Hi Tom, thanks for having a look.
Yep, the intended focal point of the thread is managing loss, specifically with limits rather than traditional stops. To me it makes good sense to try and take a loss at a more favorable place.
Its true that a limit may not get filled and you may have to chase it a little or wait it out for a fill. You can have a stop order also placed also as an emergency 'get me out' If you choose. I dont, but if you like the idea then why not? Its all about what you personally feel comfortable with.
Re the strategy being intense. As its presented here i agree, its full time while you are trying to get a position on, this is how I like to trade atm. I can keep my losses very small and the positioning efficient in the 5min for a daily sized payout, imo. Theres no reason you couldnt employ the same kind of strategy just using the daily or even weekly chart but you will likely take bigger losses for the same payout. The upside would be far less screen time.

If you have any other questions or want an opinion on any ideas you have for a method etc, feel free to chuck them up here.

Cheers
D

 

[darktone]

I have found that pre-set orders are, more often than not, more accurate than manual ones. The only drawback with my method is that I like to finish my bar. Quite often an order can be triggered by a spike, with orice returning to its old level and you might be the only one left holdiing the baby! Bar completion, making you wait that little extra, puts a bit of self-discipline into it.

Yeah I wait for bars to complete, then i set a limit to enter / exit at a better price. Are you referring to it being a drawback when using stops?

 

[darktone]

This weeks efforts:
-11.8 in the Dax
-2.8 in eurusd

 

[Splitlink]

Yeah I wait for bars to complete, then i set a limit to enter / exit at a better price. Are you referring to it being a drawback when using stops?

Sorry I did not answer yesterday but I had computer problems,

Why I like to complete bars is because breakouts always seem to be attempts by the market to take out stops and limit orders, then price reverses back into the pullback area, again. The completed bar means a manual entry. Sometimes the idea works and, sometimes, it does not,

 

[darktone]

I want to focus on a mistake I made this week in the Dax. It was a missed opportunity for a modest +100. Why did I miss it? Imo, its because i thought I knew something!
It went like this:
-------------------------------------------------------------------------------------------------------------------------------------
13.11 at the open.
The daily trend for Dax is still up so im buying today!
Heres the efforts in detail
1
2
3
4
5
2,08pm. I start thinking!
4,40pm. I begin to realise that ive strayed from my plan!
9,57pm. The mistake is confirmed!
------------------------------------------------------------------------------------------------------------------------------------------

The above isnt intended to be all 'woulda/shoulda/coulda' about a missed trade, it happens. But I want to show how easy it can to stray from your plan!
I consider myself to be pretty good in this area. Clearly i can improve!

 

[Splitlink]

I want to focus on a mistake I made this week in the Dax. It was a missed opportunity for a modest +100. Why did I miss it? Imo, its because i thought I knew something!
It went like this:
-------------------------------------------------------------------------------------------------------------------------------------
13.11 at the open.
The daily trend for Dax is still up so im buying today!
Heres the efforts in detail
1
2
3
4
5
2,08pm. I start thinking!
4,40pm. I begin to realise that ive strayed from my plan!
9,57pm. The mistake is confirmed!
------------------------------------------------------------------------------------------------------------------------------------------

The above isnt intended to be all 'woulda/shoulda/coulda' about a missed trade, it happens. But I want to show how easy it can to stray from your plan!
I consider myself to be pretty good in this area. Clearly i can improve!

That is what is meant by being patient and, then, following it up with a dose of hindsight. One decides to wait for a spot of weakness but it never comes! The number of times that that has happened to me!

 

[darktone]

Heres an example of what might have happened using a hard stop with a 'stopped or target hit' type method.
Ive done more than fair share of trading like this in my time! . Hence my overall negative view of hard stops, regardless of size.

Cheers
D

 

[darktone]

That is what is meant by being patient and, then, following it up with a dose of hindsight. One decides to wait for a spot of weakness but it never comes! The number of times that that has happened to me!

Yeah i know what you mean mate . Ive been there too, maaaany times.
But!
The point i want get across is that i didnt adhere to my plan! This was due to intraday sell off and my looking for a daily change of trend (we were well below daily ma,).
The plan was to play all ops long for a trg of +100! I managed to follow that plan till the small part of me that still thinks it knows something got the better of me! When i realised my mistake I sat back and let the day go by. Fairdos imo.

But I do understand what youre saying. Ive got the hindsight gold star on more times than i want to remember!

cheers
D

 

[darktone]

The right side of the chart

So what does the right side of the chart look like? What am i thinking?
I know it all seems a bit simple and perhaps disappointing to some, but in my experience its needs to be no more complicated than this.

Cheers
D

 

[vettelsfinger]

Hi Tom, thanks for having a look.
Yep, the intended focal point of the thread is managing loss, specifically with limits rather than traditional stops. To me it makes good sense to try and take a loss at a more favorable place.
Its true that a limit may not get filled and you may have to chase it a little or wait it out for a fill. You can have a stop order also placed also as an emergency 'get me out' If you choose. I dont, but if you like the idea then why not? Its all about what you personally feel comfortable with.
Re the strategy being intense. As its presented here i agree, its full time while you are trying to get a position on, this is how I like to trade atm. I can keep my losses very small and the positioning efficient in the 5min for a daily sized payout, imo. Theres no reason you couldnt employ the same kind of strategy just using the daily or even weekly chart but you will likely take bigger losses for the same payout. The upside would be far less screen time.

If you have any other questions or want an opinion on any ideas you have for a method etc, feel free to chuck them up here.

Cheers
D

Hi Darktone,

It seems as though the strategy is proving itself, I am still not experienced enough to take on something like this but as I said before I could incorporate it at a later date. Do you only use the DAX for these trades or is the strategy suitable for more volatile forex markets too?

That is what my trading strategy will focus on (among some other things as mentioned in my thread) I am looking to have a strategy that revolves around key support/resistance points of the EUR/USD that are confirmed several times over a variety of timeframes. This makes long term trade movements seem logical. I will keep a close eye on news (for example ECB announcements) to make sure the trades remain in profit. I will be looking for a variety of 5/10 point moves depending on the strength of the line. In terms of an exit strategy I will set stop losses just above my lines with an acceptable tolerance.

Obviously this will be refined further as time passes, but I am looking forward to getting started. Like you I believe that a simple approach to trading is all that is needed. Let me know if you would like more info on the strategy and any feedback would be great. I will keep an eye on this thread for any developments.

Thanks
Tom